2. Portray the trend of "XXX" short-term debt since 2007 in the form of a graph. You may select the appropriate graph. The short-term debt of the XXX corporation for the year 2007-2018, in millions of pesos, is: Year Short-term debt (P millions) Year Short-term debt (P millions) 2007 124 2013 126 2008 2025 2014 59 2009 1841 2015 1706 2010 619 2016 2888 2011 915 2017 3456 2012 469 2018 3500

2. Portray the trend of "XXX" short-term debt since 2007 in the form of a graph. You may select the appropriate graph. The short-term debt of the XXX corporation for the year 2007-2018, in millions of pesos, is: Year Short-term debt (P millions) Year Short-term debt (P millions) 2007 124 2013 126 2008 2025 2014 59 2009 1841 2015 1706 2010 619 2016 2888 2011 915 2017 3456 2012 469 2018 3500

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 48CTQ: If the government gives a 300 tax cut to everyone in the country, explain the mechanism by which...

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Directions: click on the graph in the window on the right and select Time Series to graph the U.S. public (federal) net outstanding debt as a percentage of GDP for the years 1940-2005. For Y Axis1 select Net Federal Debt, percentage of GDP. Use the figure to help determine which of the following statements are true. O A. The U.S. net federal debt to GDP ratio has been, for the most part, decreasing since the end of World War II, despite the fact that the U.S. economy was expanding and could afford a larger debt to GDP ratio. OB. As a result of the exceptionally large increases in U.S. government military expenditures in the first half of the 1940's, that were needed to win World War II, the net U.S. public debt to GDP ratio increased substantially, surpassing 100%. Since the late 1950's however, U.S. net federal debt to GDP ratio has fluctuated within a relatively small bend around the 40% line. OC. The net U.S. federal debt to GDP ratio follows a pattern that cannot have a meaningful…
12. As the outstanding debt of a nation becomes very large relative to the size of the economy, Group of answer choices -the borrowing cost of the government will decline. -lenders will have no choice but to hold the outstanding bonds and to buy the new ones as they are offered. -a country like the United States will have no choice but to default on the payments to bond holders. -if the country has a central bank, it will almost certainly resort to money creation to service the debt rather than directly default. Which is correct?
4. The equation representing debt dynamics for an economy can be written as follows. Gt-Tt Yt Here, bt represents the change in the debt/GDP ratio, r represents the real interest rate, g represents the growth rate, and bt-1 represents the debt ratio of the previous period. The graphs below represent the borrowing interest rates (r) and growth rates (g) of two different countries. Suppose the budget is in balance in both countries (a = 0). Briefly explain in what direction the debt change ratio of countries A and B separately, according to the equation given above and the graphs below. 5432 Scorn ن -4 -5 3/1/09 12/1/09 9/1/10 Arm TT/T/9 Zt/t/E Country A b = a + (rg)bt-1 ; α = 12/1/12 ET/T/6 6/1/14 ST/T/E 12/1/15 9t/t/6 LT/T/9 3/1/18 12/1/18 6T/T/6 30 25 20 15 10 5 -15 60/1/2 1/1/10 OT/T/TT TT/T/6 Country B 7/1/12 5/1/13 DT/T/E 1/1/15 11/1/15 g 9T/T/6 LT/T/L 5/1/18 3/1/19
The figure shows government expenditure and revenue as a percentage of GDP, 1990-2019. During which of the following periods did the federal government run a budget surplus? 27.0% 25.0% -Expenditures 23.0% 21.0% 19.0% Receipts 17.0% 15.0% YEAR O 1998-2001 None of these answers is correct. O 2003-2008 2012-2018 PERCENT OF GDP 0661 1991 1993 1994 9661 2661 6661 0007 2002 2003 2005 9007 2008 6007 2011 2012 2014 2015 2017 2018
5. Consider the following national-income model (with taxes ignored): Y - C(Y) – 1(i) – Go = 0 (0 < C' < 1; l'< 0) kY +L (i) – M0 = 0 (k = positive constant: L'< 0) (a) is the first equation in the nature of an equilibrium condition? (b) What is the total quantity demanded for money in this model? (c) Analyze the comparative statics of the model when money supply changes (monetary policy} and when government expenditure changes (fiscal policy).
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Sketch a diagram of how sustained budget deficits cause low economic growth.
How would you expect larger budget deficits to affect private sector investment in physical capital? Why?
If the government gives a 300 tax cut to everyone in the country, explain the mechanism by which this will cause interest rates to rise.
Have the spending and taxes of the U.S. federal government generally had an upward or a downward trend in the last few decades?
What is the main reason for employing contractionary fiscal policy in a time of strong economic growth?
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